Highest June Property Price Growth in 11 Years
7th August 2018
Average Spanish property prices rose by 6.4% in June, compared with the same month last year, representing the highest house price increase in eleven years, according to a report by property valuation firm Tinsa.
Property prices grew across all of the categories identified by Tinsa, led by a 10.2% rise in property values in ‘regional capitals and other large cities’. Property values rose by 7.4% along the ‘Mediterranean coast’ and grew by 3.1% in ‘metropolitan areas’. The ‘Balearic and Canary Islands’ saw modest 1.8% rise in house prices, while the catch-all category of ‘other municipalities’ registered a 3.1% rise, reports newspaper Murcia Today.
Tinsa’s ‘market snapshot’ – included in the latest bulletin – shows various factors contributing to the rise in property prices and market recovery:
– Unemployment fell by 5.97% in June to 3.16 million
– The Euribor – a rate most commonly used to calculate most Spanish mortgage interest repayments – ended June on -0.181%, close to all time lows.
Meanwhile the latest monthly data (for April) shows:
– Sales figures grew by 29.7% year-on-year and by 16.1% in the first four months of the year.
– The number of building licence approvals increased by 44.8% year-on-year and by 22.9% in the first four months of the year.
– Mortgage application approvals showed a year-on-year increase of 35.7% and a 12.3% rise in the first four months of 2018.
Average property prices are now 12% higher than when the market bottomed out in February 2015, although prices still remain 35.7% lower than the peak values reached during the property boom, Tinsa calculate.
Published by David
